Budget Participation on Managerial Performance With Budgetary Justice As A Mediation Variable

Authors

  • Ardilla Ayu Kirana Sekolah Tinggi Ilmu Ekonomi Indonesia, Surabaya, Indonesia
  • Emeralda Ayu Kusuma Sekolah Tinggi Ilmu Ekonomi Indonesia, Surabaya, Indonesia

DOI:

https://doi.org/10.30659/ijibe.9.2.142-157

Keywords:

Budget Participation, Procedural Justice, Distributive Justice, Interactional Justice, Managerial Performance

Abstract

The purpose of this study is to obtain empirical evidence of the influence of budget participation on managerial performance and to obtain empirical evidence of the influence of budget justice as a mediating variable on budget participation on managerial performance. This research is descriptive quantitative research with associative research methods and explanatory research. The data were obtained using primary data in the form of a questionnaire with a sample size of 141 companies in the PT. Surabaya Industrial Estate Rungkut. The data analysis in this study used Structural Equation Modeling (SEM) with the Partial Least Square approach using the WarpPLS application. The results showed that budget participation has a significant direct effect on managerial performance, both before and after including the mediating variables of procedural, distributive, and interactional justice. Procedural, distributive, and interactional justice were found to mediate this relationship. The findings highlight the importance of budget participation and justice in enhancing managerial performance. Procedural, distributive, and interactional justice mediate this relationship, emphasizing that fairness in processes, resource allocation, and interpersonal treatment positively impact performance. This supports fairness, transparency, and respect in decision-making, fostering trust, motivation, and long-term organizational success through ethical leadership and justice-driven practices

References

Abdullah, M. I., Masdar, R., Karim, F., Din, M., Zahra, F., Furqan, A. C., ... & Megawati, N. (2022). Improving the Management of School Operational Assistance (SOA) Grants Through Expenditure Governance. Economic and Business Horizon, 1(3), 1-12.

Adams, J. S. (1963). Towards an understanding of inequity. The journal of abnormal and social psychology, 67(5), 422.

Alam, A., Isman, I., Indriyani, L., & Bafana, F. A. (2023). Islamic Business Ethics in The Process of Termination of Employment Amid the Covid-19 Pandemic. IJIBE (International Journal of Islamic Business Ethics), 8(2), 113-128.

Anshori, M., & Iswati, S. (2009). Metodologi Penelitian Kuantitatif (Pertama). Pusat Penerbitan dan Percetakan UNAIR (AUP).

Anthony, R. N., Govindarajan, V., Hartmann, F. G., Kraus, K., & Nilsson, G. (2007). Management control systems (Vol. 12). Boston: McGraw-Hill.

Antonius, A., Argunanto, A., Wulan, D. A., Zahra, I. E., Arifin, D., Anjelia, V., ... & Holiawati, H. (2024). The Effect of Financial Planning, Budgeting and Estimation in the Business Plan. Jurnal Ilmiah Akuntansi Kesatuan, 12(5), 723-730.

Brownell, P. (1982). The role of accounting data in performance evaluation, budgetary participation, and organizational effectiveness. Journal of accounting research, 12-27.

Cantika, S., Mukhzarudfa, M., & Zulma, G. W. M. (2021). Pengaruh Partisipasi Anggaran, dan Sistem Pengendalian Intern Pemerintah dengan Komitmen Organisasi Sebagai Variabel Moderasi Terhadap Kinerja Manajerial pada Organisasi Perangkat Daerah (OPD) Di Provinsi Jambi. Jurnal Ilmiah Universitas Batanghari Jambi, 21(2), 628-635.

Dayan, M., & Di Benedetto, A. (2008). Procedural and interactional justice perceptions and teamwork quality. Journal of Business & Industrial Marketing, 23(8), 566-576.

De Clercq, D., Danis, W. M., & Dakhli, M. (2010). The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies. International Business Review, 19(1), 85-101.

Devi, A., & Rusydiana, A. (2016). Islamic group lending model (GLM) and financial inclusion. IJIBE (International Journal of Islamic Business Ethics), 1(1), 80-94.

Ermawati, N. (2017). Pengaruh partisipasi anggaran terhadap kinerja manajerial dengan motivasi kerja sebagai variabel pemoderasi (Studi kasus Skpd Kabupaten Pati). Jurnal Akuntansi Indonesia, 6(2), 141-156.

Firana, Y., & Abbas, A. (2020). Dimensi Keadilan dalam Partisipasi Penyusunan Anggaran dan Kinerja Manajerial Rumah Sakit. Jesya (Jurnal Ekonomi dan Ekonomi Syariah), 3(2), 99-110.

Giusti, G., Kustono, A. S., & Effendi, R. (2018). Pengaruh partisipasi anggaran terhadap kinerja manajerial dengan komitmen organisasi dan motivasi sebagai variabel intervening. E-Journal Ekonomi Bisnis Dan Akuntansi, 5(2), 121-128.

Govindarajan, V. (1986). Impact of participation in the budgetary process on managerial attitudes and performance: Universalistic and contingency perspectives. Decision sciences, 17(4), 496-516.

Greenberg, J. (1986). Determinants of perceived fairness of performance evaluations. Journal of applied psychology, 71(2), 340.

Hair Jr, J., Hair Jr, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2023). Advanced issues in partial least squares structural equation modeling. saGe publications.

Inan, O. T., Etemadi, M., Wiard, R. M., Giovangrandi, L., & Kovacs, G. T. A. (2009). Robust ballistocardiogram acquisition for home monitoring. Physiological measurement, 30(2), 169.

Indrawati, S. (2020). Pengaruh Partisipasi Penyusunan Anggaran Terhadap Kinerja Manajerial Pada BPR di Wilayah Otoritas Jasa Keuangan Purwokerto. Jurnal Ekonomi, Bisnis, dan Akuntansi, 22(3), 285-298.

Kartasari, S. F., Tjahjadi, B., & Narsa, I. M. (2019). Keselarasan anggaran dan kinerja manajerial: Peran mediasi keadilan anggaran. Jurnal Ekonomi dan Bisnis, 22(2), 205-230.

Kohlmeyer III, J. M., Mahenthiran, S., Parker, R. J., & Sincich, T. (2014). Leadership, budget participation, budgetary fairness, and organizational commitment. In Advances in accounting behavioral research (pp. 95-118). Emerald Group Publishing Limited.

Kren, L. (1992). Budgetary participation and managerial performance: The impact of information and environmental volatility. Accounting Review, 511-526.

Lau, C. M., & Tan, S. L. (2006). The effects of procedural fairness and interpersonal trust on job tension in budgeting. Management accounting research, 17(2), 171-186.

Lau, C. M., & Tan, S. L. (2012). Budget targets as performance measures: The mediating role of participation and procedural fairness. In Advances in management accounting (pp. 151-185). Emerald Group Publishing Limited.

Lestari, D. A., Aswat, I., & Yantiana, N. (2024). Implementation of the Value for Money Concept in Measuring Financial Performance at the Library and Archives Service of West Kalimantan Province. Jurnal Ilmiah Manajemen Kesatuan, 12(5), 1831-1838.

Magner, N., & Johnson, G. G. (1995). MUNICIPAL OFFICIALS'REACTIONS TO JUSTICE IN BUDGETARY RESOURCE ALLOCATION. Public Administration Quarterly, 439-456.

Mahoney, T. A. (1963). Development of managerial performance: A research approach. South-western Publishing Company.

Maiga, A. S. (2006). Fairness, budget satisfaction, and budget performance: a path analytic model of their relationships. In Advances in Accounting Behavioral Research (Vol. 9, pp. 87-111). Emerald Group Publishing Limited.

Maiga, A. S., & Jacobs, F. (2007). Budget participation's influence on budget slack: The role of fairness perceptions, trust and goal commitment. Journal of Applied Management Accounting Research, 5(1), 39-58.

Milani, K. (1975). The relationship of participation in budget-setting to industrial supervisor performance and attitudes: a field study. The accounting review, 50(2), 274-284.

Moorman, R. H. (1991). Relationship between organizational justice and organizational citizenship behaviors: Do fairness perceptions influence employee citizenship?. Journal of applied psychology, 76(6), 845.

Muhammad Sujai, S. E., MM, M. S., Cahyadi, N., S ST, M. M., Asmawati, M. S., ST, I. A. S., ... & Ani Mekaniwati, S. E. (2022). Manajemen Keuangan. CV Rey Media Grafika.

Noe, R. Hollenbeck. JR, Gerhart, B., & Wright, PM (2017). Fundamentals of human resource management.

Nurcahyani, R., & Muhammad, H. (2023). Optimizing the Inspectorate's Supervisory Function to Achieve Accountability in Regional Financial Management in Kuantan Singingi Regency. Jurnal Ilmiah Manajemen Kesatuan, 11(3).

Ogiedu, K. O., & Odia, J. (2013). Relationship between budget participation, budget procedural fairness, organizational commitment and managerial performance. Review of Public Administration and Management, 2(3), 234-250.

Phung, T. D., & Hoang, T. T. (2018). The influence of budgetary commitment on budgeting participation and managerial performance of middle managers in Vietnamese enterprises. In The 5th IBSM International Conference on Business, Management and Accounting (pp. 499-511).

Pramiudi, U. (2024). Determinant: Follow-up of Audit Result Recommendations on the Quality of Regional Government Financial Reports: Empirical Study Regional Government-LKPD Period 2015-2019. Jurnal Ilmiah Akuntansi Kesatuan, 12(3), 431-440.

Pudjianto, S. Y., Rasidar, R., Chainar, C., Purnama, D., & Marini, M. (2023). The effectiveness of village financial management in the implementation of accounting systems and procedures in Paloh District, Sambas Regency. Research Horizon, 3(6), 611-627.

Tyler, T. R., & Bies, R. J. (2015). Beyond formal procedures: The interpersonal context of procedural justice. In Applied social psychology and organizational settings (pp. 77-98). Psychology Press.

Wahyudi, F. E., & Santoso, R. S. S. (2022). The Role of Social Capital in Community Based Ecotourism: A Case of Batang District, Central Java, Indonesia. Research Horizon, 2(5), 511-531.

Wentzel, K. (2002). The influence of fairness perceptions and goal commitment on managers' performance in a budget setting. Behavioral research in Accounting, 14(1), 247-271.

Downloads

Published

2024-11-20

Issue

Vol. 9 No. 2 (2024): September 2024

Section

Articles

License

License and Copyright Agreement
In submitting the manuscript to the journal, the authors certify that:
  • They are authorized by their co-authors to enter into these arrangements.
  • The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal.
  • That it is not under consideration for publication elsewhere,
  • That its publication has been approved by all the author(s) and by the responsible authorities – tacitly or explicitly – of the institutes where the work has been carried out.
  • They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
  • They agree to the following license and copyright agreement.
Copyright
Authors who publish with IJIBE agree to the following terms:
  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
Licensing for Data Publication
IJIBE uses a variety of waivers and licenses, that are specifically designed for and appropriate for the treatment of data:
Other data publishing licenses may be allowed as exceptions (subject to approval by the editor on a case-by-case basis) and should be justified with a written statement from the author, which will be published with the article.

Open Data and Software Publishing and Sharing
The journal strives to maximize the replicability of the research published in it. Authors are thus required to share all data, code or protocols underlying the research reported in their articles. Exceptions are permitted but have to be justified in a written public statement accompanying the article.
Datasets and software should be deposited and permanently archived inappropriate, trusted, general, or domain-specific repositories (please consult http://service.re3data.org and/or software repositories such as GitHub, GitLab, Bioinformatics.org, or equivalent). The associated persistent identifiers (e.g. DOI, or others) of the dataset(s) must be included in the data or software resources section of the article. Reference(s) to datasets and software should also be included in the reference list of the article with DOIs (where available). Where no domain-specific data repository exists, authors should deposit their datasets in a general repository such as ZENODO, Dryad, Dataverse, or others.
Small data may also be published as data files or packages supplementary to a research article, however, the authors should prefer in all cases a deposition in data repositories.

This work is licensed under a Creative Commons Attribution 4.0 International License.